Smartworks Coworking Spaces Ltd, a prominent player in India's burgeoning managed office solutions sector, is set to open its initial public offering (IPO) for public subscription on July 10, 2025. The IPO will conclude on July 14, with anchor investor bidding commencing a day earlier on July 9. This highly anticipated listing aims to capitalize on the increasing demand for flexible, high-quality office environments in India's major business hubs.

Smartworks has filed its Red Herring Prospectus (RHP) with regulatory authorities, outlining its plans to raise capital through a combination of a fresh issue of shares and an Offer for Sale (OFS) by its promoters. The company has revised its IPO size downwards from earlier plans, with the fresh issue now reduced to ₹445 crore (from ₹550 crore previously) and the OFS by promoters cut to 3,379,740 equity shares (from 6,759,480 shares). The total issue size remains to be fully disclosed, but it is expected to be a significant offering in the current market.

The proceeds from the fresh issue are earmarked for strategic purposes. Approximately ₹226 crore will be allocated for capital expenditure related to fit-outs in new centers and security deposits for these properties. An additional ₹114 crore will be used for the repayment or prepayment of certain borrowings, while the remaining funds will be utilized for general corporate purposes. This allocation reflects Smartworks' commitment to expanding its footprint and strengthening its financial position.

Smartworks' business model revolves around leasing large, bare-shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses. These modern workspaces are equipped with a range of amenities, including cafeterias, sports zones, gyms, and medical centers, designed to enhance the overall employee experience. The company primarily caters to mid-to-large enterprises requiring over 300 seats, setting it apart from many smaller coworking operators.

The company has demonstrated robust operational growth. Between Fiscal Year 2023 and Fiscal Year 2025, Smartworks expanded its space under management by 2.83 million square feet, achieving a Compound Annual Growth Rate (CAGR) of 20.80%. Its revenue from operations also saw a significant CAGR of 38.98% during the same period. For the full fiscal year 2025, Smartworks reported revenue of ₹1,409.67 crore, a substantial increase from ₹1,113.11 crore in FY2024. While the company recorded a net loss of ₹63.18 crore in FY2025 (compared to ₹49.96 crore in FY2024), this reflects ongoing investments in expansion and fit-outs, a common characteristic of growth-stage companies in this capital-intensive sector.

As of March 31, 2024, Smartworks managed 8 million square feet of leased area across 13 cities, boasting 603 customers and 130,047 seats. Its strong pan-India presence and focus on comprehensive, managed solutions make it a preferred partner for larger businesses seeking agile and flexible office solutions.

The IPO is being managed by a syndicate of leading investment banks, including JM Financial Ltd, BOB Capital Markets Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd. The shares are proposed to be listed on both the BSE and NSE on July 17, 2025, providing investors an opportunity to participate in the growth story of India's evolving commercial real estate landscape.